Correlation Between Bank Mandiri and Rackla Metals
Can any of the company-specific risk be diversified away by investing in both Bank Mandiri and Rackla Metals at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bank Mandiri and Rackla Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Mandiri Persero and Rackla Metals, you can compare the effects of market volatilities on Bank Mandiri and Rackla Metals and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Bank Mandiri with a short position of Rackla Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Mandiri and Rackla Metals.
Diversification Opportunities for Bank Mandiri and Rackla Metals
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Rackla is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Bank Mandiri Persero and Rackla Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rackla Metals and Bank Mandiri is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Bank Mandiri Persero are associated (or correlated) with Rackla Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rackla Metals has no effect on the direction of Bank Mandiri i.e., Bank Mandiri and Rackla Metals go up and down completely randomly.
Pair Corralation between Bank Mandiri and Rackla Metals
Assuming the 90 days horizon Bank Mandiri Persero is expected to under-perform the Rackla Metals. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Mandiri Persero is 2.9 times less risky than Rackla Metals. The pink sheet trades about -0.09 of its potential returns per unit of risk. The Rackla Metals is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 5.30 in Rackla Metals on August 29, 2024 and sell it today you would earn a total of 1.50 from holding Rackla Metals or generate 28.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Mandiri Persero vs. Rackla Metals
Performance |
| Timeline |
| Bank Mandiri Persero |
| Rackla Metals |
Bank Mandiri and Rackla Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Mandiri and Rackla Metals
The main advantage of trading using opposite Bank Mandiri and Rackla Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Mandiri position performs unexpectedly, Rackla Metals can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Rackla Metals will offset losses from the drop in Rackla Metals' long position.| Bank Mandiri vs. PT Bank Rakyat | Bank Mandiri vs. Piraeus Bank SA | Bank Mandiri vs. Eurobank Ergasias Services | Bank Mandiri vs. Zions Bancorporation |
| Rackla Metals vs. TRU Precious Metals | Rackla Metals vs. North Peak Resources | Rackla Metals vs. Augusta Gold Corp | Rackla Metals vs. Nine Mile Metals |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |